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Ant’s botched IPO: How China shot itself in foot, lost a golden opportunity The Shanghai Stock Exchange’s surprise suspension of Ant Group’s record-breaking initial public offering Tuesday night changed the landscape
Nov. 3 was a sad, sad day for China. Not because America’s election changes anything about its hawkish stance toward Beijing — that’s bipartisan — but because China lost a golden investment opportunity by shooting itself in the foot. Looking purely at the numbers, China is in a sweet spot right now. Its bonds are attractive, as the yield differential with U.S. Treasuries hovers near a five-year high. Beijing’s viruscontainment strategy is working, and the economy has bounced back. Meanwhile, President Xi Jinping’s latest five-year economic
blueprint, which favors innovation and domestic consumption, is a win for tech companies — exactly the kind of growth stocks investors love. Foreigners have been buying the China story this year, even as President Donald Trump threatened to sanction and delist mainland companies. They are crowding into Beijing’s sovereign issues at a record pace, promising to overtake domestic city commercial banks as the second largest purchasing bloc. Global investors need to have “a significant portion” of their portfolios in Chinese assets, both for diversification and short-term tactical gains, said Bridgewater Associates LP founder Ray Dalio…